Dollar Dips While Bitcoin Hits $10,000

On Wednesday, the dollar dropped against a basket of currencies mainly brought down by the strength in sterling and worries regarding a possible U.S. government shutdown after Democrats left a meeting with President Donald Trump.

Bitcoin continues to fly, soaring past the $10,000 level for the first time reaching $10,753 on the Bitstamp exchange, a more than elevenfold increase since the beginning of the year.

The dollar is on track for its worst month since July and worst year since 2003 and fell 0.2 percent against its currency basket. On Tuesday, Democrats in Congress dodged a budget meeting with Trump after he earlier had tweeted them weak on illegal immigration and bent on raising taxes. With both sides far from agreement this raises the risk of a government shutdown before ahead of the December 8th deadline.

“More attention is being given by markets…to this potential shutdown on December 8th and the fact that we had this tweet from Trump yesterday,” said macro strategist Derek Halpenny.

On Tuesday, Jerome Powell, the new head of the U.S. Federal Reserve, did not really mention of monetary policy in the hearing of his nomination to take over the central bank.

“Powell didn’t rock the boat in any major way…but there’s enough debate going on in the FOMC (Federal Open Market Committee) in terms of what’s behind low inflation to prompt a period of pause (in rate hikes) in the first half of next year,” Halpenny said.

Halpenny also added that Britain’s pound was pushing the dollar down across the board as increased optimism that Britain would reach deal with the European Union. The euro rose 0.3 percent to $1.1882

The currency market seemed not to be affected by the North Korean test launch of an intercontinental ballistic missile which landed near Japan. “The market appears to have gotten used to such events. How the United States responds, however, still bears watching,” said Shin Kadota, a senior strategist.

With majors in industrial finance, Erica took to journalism because of her interest in writing. Having keen interest in medical industry as well, Erica has a unique perspective on the health industries.

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